Golden Dilemma

The gold miners have continued to be subdued to downright weak over the past month.

A triangle seems to be forming if we look at a 2 hour chart.

At this point, we must be prepared for another bear raid on the metal as the US dollar is strengthening versus many foreign currencies.

If we look at a chart of GDX we see some possibilities:

A review of the US dollar chart posted a month ago (and now updated) show the breakout we suggested may be forming a bull flag before moving to our rather aggressive target of 88.

What will be interesting to watch is how far the gold miners fall, if the breakdown does occur, and how long it takes to unfold.

In my view, we are getting close to the bottom in GDX.

How will the miners react to a strong upward move in the dollar?

We could see an initial move down, followed by some additional consolidation until only the strongest hands hold both the metal and miners.


  1. Buying miners on all dips. When there's blood in the streets buy!

  2. You are quite probably correct buying here Bill.
    I am attempting to determine a better defined low before becoming a major buyer myself.
    In looking at the Comex and the pattern in GLD, perhaps the best entry point will come toward the end of the month.

  3. After today's close on the DXY PW it that a very distinctive cup and handle bullish formation on the $ chart I see?

    Looks to be. I fell fast asleep on my usual favorite TBT, she seems a little warm to consider a position but I will be watching that one as well.

    Be well sir



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